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Thailand to adopt a new 5 year investment promotion strategy
04/11/2022
Thailand’s Board of Investment (BOI) has approved a new 5 year investment promotion strategy. The purpose of this strategy is to identify industries and sectors that are essential to Thailand’s long-term development and competitiveness.
This new 5 year strategy will take effect at the start of 2023 and last until 2027.
Key points
- The BOI strategy aims to identify industries and sectors that are essential to Thailand’s long-term development and competitiveness.
- The BOI will create supportive policies and services to encourage both domestic and foreign investment in these industries.
- The new 5 year strategy will be in effect between 2023 and 2027.
What is the new 5 year investment promotion strategy?
The BOI has designed and implemented a new five-year investment promotion strategy which has been designed to attract investment in innovative, high-tech, and green industries.
On October 17, 2022, the Board of Investment (BOI) announced the approval of the new Five-Year Investment Promotion Strategy. This strategy will be used to help identify important industries and sectors that are strategic to Thailand’s long-term development and competitiveness. It is hoped that this strategy will attract new investment within these identified areas. In order to do this, the BOI will create supportive policies and services to encourage both domestic and foreign investment in these industries.
The strategy will be in effect between 2023 and 2027.
Restructuring Thailand’s economy
The BOI’s investment promotion strategy is set to become a significant part of shifting Thailand into “the new economy era”. The “new economy era” broadly aligns with Industry 4.0, which refers to the application of automation, artificial intelligence, and smart technology in the economy.
The BOIs strategy will follow these three core concepts:
- Innovation, technology, and creativity;
- Competitiveness and the ability to adapt quickly; and
- Inclusiveness, taking into account environmental and social sustainability.
It is important to note that these concepts do not refer to specific areas or industries, but can be viewed as principles to guide how Thailand should develop its economy.
Furthermore, the BOI hopes that strategies such as these will strengthen Thailand’s status as a regional hub for business, trade, and logistics.
The strategy’s seven pillars
The strategy has identified seven pillars for turning the BOI’s investment promotion policies into reality. These pillars are the key areas of industry development and policy reforms identified by the BOI.
The seven pillars are as follows:
- The upgrade of existing industries, this will be done in parallel with the development of new industries in which Thailand has a high potential.
- The acceleration of the industrial transition to green and smart industries through investments in automation, digital adoption, and decarbonization.
- The promotion of Thailand as a business hub, and an international trade and investment gateway for the region.
- Strengthening SMEs and startups, and making sure they have the access they need to the global market and supply chain.
- The promotion of investments in the different regions of Thailand.
- The promotion of investments that will promote community and social development.
- The promotion of Thailand’s overseas investment to expand business opportunities for Thai companies.
These seven pillars share several similarities. For example, all the areas listed aim to digitize the economy, create green industries and processes, and promote inclusive growth across Thailand’s regions and communities.
Who will this strategy benefit the most?
The industries that will benefit most from these pillars include electric vehicle manufacturers, bio-circular green (BCG) industries, and automated manufacturing systems, among others. Further, Thailand will put far greater emphasis on developing innovation and R&D capabilities, to help develop a stronger knowledge-based economy.
How will the BOI support this strategy?
The BOI will support this strategy through the use of incentives, service support, and policies that improve the business environment. Over the next five years, the BOI is expected to put greater emphasis on increasing support for both domestic and foreign investors by improving Thailand’s business environment and ease of doing business.
Thailand and the BOI will continue to offer tax benefits and other incentives to continue to support investment in target industries and regions.
How can Belaws help?
To learn more about the BOI in Thailand, why not talk directly to one of our experts?
Please note that this article is for information purposes only and does not constitute legal advice.
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Frequently asked questions
Do expats pay income tax in Thailand?
Thailand imposes an income tax on any income earned in Thailand for both resident and non-residents individuals. This tax will be imposed regardless of whether such income is paid in or outside of Thailand.
Do Thai citizens pay taxes?
Yes, Thai citizens are subject to tax.
What happens if you dont pay tax in Thailand?
You will be subject to Imprisonment for a term up to 1 year; or a. Fine up to 200,000 Baht; or. Both.
What’s the average cost of living in Thailand?
On average, $1,500 a month is accepted as a suitable income for a comfortable life in Thailand.
How can I avoid tax in Thailand?
It is not recommended to avoid paying tax in Thailand.
Do expats pay tax in Thailand?
Thailand imposes an income tax on any income earned in Thailand for both resident and non-residents individuals. This tax will be imposed regardless of whether such income is paid in or outside of Thailand.
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